Tesla stock is at the center of yet another negative headline
The shares of Tesla Inc (NASDAQ:TSLA) are down 5.4% at $184.37 at last glance, after yet another negative news headline for the electric vehicle (EV) giant. Bloomberg today reported that Tesla will cut its December output in Shanghai due to slow demand, and while it's still unclear whether or not this claim is true, China accounts for a large amount of the company's global profits, and this alongside uncertainty regarding the China's Covid-19 restrictions has the stock moving lower.
On the charts, Tesla stock has been seeing pressure at the $200 level for the past month. Plus, its descending 30-day moving average has kept a lid on attempted rallies since September. Year-to-date, the equity is down 47.7%.
Options traders have favored calls over the past two weeks, with 1.53 calls bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks higher than 95% of readings from the past year, showing strong bullish sentiment.